Borrowing into retirement using SIPP or rental income? Sorted.

The borrowers

Colin and Anne are both 60, and are married with one daughter. They would like to capital raise to gift their daughter a deposit for her first home. As well as their own home, they own two unencumbered buy to let properties with a combined value of £250k and have no credit commitments or issues. 

They are looking for a remortgage on their main residence. Their family home is valued at £550k, on which they need an interest only mortgage of £250k. 

Anne is currently employed and earning £40k a year and has a SIPP of 420k not being drawn yet.

Colin has UK land and property income of £16k showing on his latest SA302 and a pension of £83k – also not yet being drawn.

They intend to use sale of current residential or background buy to let property as the repayment vehicle.

How we can help

We can accept a wide range of incomes including up to 100% of UK land and property income (less any finance costs) and allow capital raising for buy to let or to gift deposit money for their family to purchase a property.

We are able to consider a term to age 75 (subject to employment type), so in this case up to a 14-year term. We offer residential interest only mortgages with the affordability calculated on an interest only basis up to 70% LTV, and we accept ‘Sale of property’ as an acceptable repayment method, subject to there being a sufficient amount of equity available within the mortgaged property at the start of the mortgage and the ability to downsize.

We love to talk a case through, why not call your Foundation Regional Area Manager today?